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RSG organic growth accelerates to 29% in Q3

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Ryan Specialty Group continue to post blowout organic growth in the third quarter, as the organic top line grew by 28.9%, up from 13.6% last year and 28.5% in the second quarter.

The wholesale broker and underwriting manager disclosed earnings for the second time as a public company, reporting $0.24 in adjusted earnings per share, easily beating analysts' $0.18 estimate.

Total revenues came in almost 50% higher to $353mn, from $237mn last year. The company’s inorganic growth numbers benefitted meaningfully from the company’s acquisition of rival intermediary All Risks a year ago.

Net income was up by more than 50% in the quarter, to $63mn. The improvement was even stronger than in the second quarter, when it grew net income by 27%. The wholesale brokerage division improved its overall revenue from commissions and fees by 48% to $229mn, versus $155mn a year ago.

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Binding authority commissions and fees picked up by 46% to $53mn, compared with $36mn last year. The underwriting management business grew by 53%, to $71mn.

The newly public intermediary upped its overall full-year organic growth forecast to 21.5%-22.5%, from 18%-20% previously. It also expected to generate full-year Ebitdac margins between 31.5% and 32%, up from its 30% to 30.5% previous estimate.

“The Ryan Specialty team didn’t miss a beat as we completed our IPO and debuted on the NYSE,” said founder, chairman and CEO Pat Ryan in a statement.

“We delivered a very strong financial performance across the board, with organic revenue growth for the quarter eclipsing 28% driven by our extraordinary talent, differentiated platform, ongoing broker consolidation, and a robust E&S market,” he continued.

“In addition, our platform’s scalability facilitated another quarter of improved margins on a year-over-year basis,” he said.

“With the integration of All Risks in the home stretch and our exceptionally talented team of specialists, we are well positioned to maintain our momentum and execute on all phases of our game plan.”

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